* U.S. May non-farm payrolls grow a touch less than expected
* SPDR gold ETF holdings rise 21.3 T to record high
* Rand Refinery reports 50 rise in coin output in a week
(Updates prices)
By Jan Harvey
LONDON, June 4 (Reuters) - Gold recovered from losses on
Friday after data showed the United States added fewer jobs than
expected in May, knocking assets seen as higher risk such as
stocks and lifting haven buying of bullion.
The metal has benefited this year from nervousness in the
financial markets amid concerns that sovereign debt problems in
the euro zone could spill over into the wider economy, hampering
the broader economic recovery.
Spot gold <XAU=> was bid at $1,204.85 an ounce at 1509 GMT
against $1,206.05 an ounce late in New York on Thursday. It
earlier touched a session low of $1,196.65 an ounce. U.S. gold
futures for August delivery <GCQ0> were down $3.50 at $1,206.50.
"The question is, 'What do you want to hold in an
environment like this?' And people are answering that question
today by (buying into) gold," said Michael Widmer, an analyst at
Bank of America-Merrill Lynch.
"We had a sell-off earlier today but we have now recovered
most of those losses," he added. "We went below $1,200, but gold
looks reasonably well supported overall."
The U.S. Labor Department said on Friday payrolls rose
431,000, buoyed by recruitment for the decennial census as the
government hired 411,000 extra workers. []
That was the largest monthly increase since March 2000 and
marked a fifth straight month of gains, but it missed
expectations of 513,000 jobs.
Some analysts had been anticipating an even stronger figure
after upbeat data earlier this week. []
The report knocked stocks, the euro and industrial
commodities, with European and U.S. equities extending losses
after the numbers. [] []
The euro <EUR=> fell 1 percent against the dollar as risk
appetite waned, while the U.S. currency firmed in choppy trade
against a currency basket. The dollar, like gold, is often seen
as a haven from risk. []
Oil prices also slid more than 2 percent, while industrial
metals such as copper, zinc and led fell. [] []
INVESTMENT STRONG
Gold investment has been firm, with coin sales strong in
Europe. The world's largest gold exchange-traded fund, SPDR Gold
Trust <GLD.P>, reported a 21.3-tonne inflow on Thursday that
took its holdings to a record 1,289.839 tonnes. []
London's ETF Securities also reported inflows of 41,423
ounces of metal into its gold-backed exchange-traded products
that day, worth around $50 million.
"ETF investors' continued willingness to load up on gold
exposure provides a degree of comfort that a price floor is
near," said UBS analyst Edel Tully in a note.
Rand Refinery Ltd., the world's largest gold refiner, said
production of South Africa's Krugerrand gold coins soared by 50
percent in a week as the euro zone debt crisis drove up investor
demand. []
The industrial precious metals -- silver, platinum and
palladium -- fell after the data, in line with base metals.
Platinum <XPT=> slipped to $1,512.25 an ounce from
$1,542.50, palladium <XPD=> to $427.70 from $448.50, and silver
<XAG=> to $17.53 from $17.94.
In the longer term, platinum group metals in particular are
expected to be well supported by a recovery in demand.
"Improving auto and industrial demand bodes well for both
metals," said Barclays Capital in a note on Friday. "Potential
supply disruptions in South Africa could push the platinum
market into a deeper deficit."
"In palladium, continued growth in physical ETPs,
particularly following the implementation of a higher ceiling
for the U.S. products has the capacity to absorb excess supply."
(Editing by Jane Baird)
